| 
  • If you are citizen of an European Union member nation, you may not use this service unless you are at least 16 years old.

  • You already know Dokkio is an AI-powered assistant to organize & manage your digital files & messages. Very soon, Dokkio will support Outlook as well as One Drive. Check it out today!

View
 

Unit 5: Personal Finance

Page history last edited by Pete Scholtes 11 years, 1 month ago

Unit 5 Summary: In this unit, you will learn how to achieve personal and financial goals by applying economic concepts to planning, budgeting, spending, saving, investing, borrowing, and insuring decisions. You will also learn how to interview for a job and plan your career.

 

Week 18 (Jan. 14-17)

__Mon., Jan. 14: "How to Really Be a Millionaire" (2 points) Also: Unit 4 Terms check, Unit 4 Study Guide turn-in, Intro to Unit 5: Personal Finance: Civ and Econ Unit 5 Checklist Revised 2013.doc Turn in Unit 5 Word Find, which counts as Unit 6 Word Find. "Why stay in school?" Learning goal: Describe characteristics of millionaires. Vocabulary: interest: price of borrowing money, paid as a percentage. principal: original amount of a loan. compound interest: interest added to the principal, so it also earns interest.

__Tue., Jan. 15: "Looking for a job" (3 points) Learning goal: Describe qualities employers are looking for in employees.

__Wed., Jan 16: Reading 1: "Managing Your Money," p. 368-391. Unit 5 Reading 1.ppt Get questions in class. For make-up, do Questions 1-4 on p. 371, and put vocabulary from first question directly in your Terms. (3 points) Homework A: "Banking Basics." (three checks)  Learning goals: Make a budget.

Vocabulary: fringe benefits: indirect payments people receive for their work. dividends: payments from the profits of companies in which they own stock. disposable income: amount of money a person has left after paying taxes. fixed expenses: paid regularly, usually every month. variable expenses: change from month to month. Questions in book: 2. What are four types of earned income? 3. Explain how a budget can help you to make good money management choices. 4. Imagine you are still living at home. Make a budget showing how you would spend or save this money. Indicate whether each item is a fixed or variable expense. Rank each budget item from most to least important.

__Thu., Jan 17: "Making Your Own Job" (2 points). Collect homework. Also: Review Unit 4 Test. Unit 4 Test Review.ppt Learning goal: Compare entrepreneurship with working for someone else. Explain the role of financial institutions and credit markets in the acquisition of capital. Vocabulary (to write down Tuesday): entrepreneur: a person who starts a business.

 

Week 19 (Jan. 21-25)

__Mon. Jan. 21: (We have school, but no class today.)

__Tue., Jan. 22: "Managing Your Money" activity Day 1 (2 points) Also: "Why Save?" Vocabulary: net worth: a firm's total assets minus its total liabilities. asset: something you own. liability: something you owe. entrepreneur: a person who starts a business. Learning goals: Establish financial goals; make a financial plan considering budgeting and asset building to meet those goals; and determine ways to track the success of the plan. For example: Goals-college education, start a business, buy a house, retire comfortably; calculate net (or disposable) income. Plan- calculate necessary saving to meet a financial goal; create a cash-flow or income-expense statement; create a balance sheet showing assets and liabilities. Describe different forms of income, and different types of financial institutions (banks, credit unions, investment firms, cooperatives) and explain their role in the economy. 

__Wed., Jan. 23: "Managing Your Money" Day 2 (a.k.a. "John and Marcia" worksheets) (2 points) Homework B: "Budgeting Basics" (a.k.a. "Vocabulary Examples" Unit 5 midpoint Vocabulary Key.doc Vocabulary examples.doc and "John and Marcia" worksheets) (3 points). Learning goals: Establish financial goals; make a financial plan considering budgeting and asset building to meet those goals; and determine ways to track the success of the plan. For example: Goals: college education, start a business, buy a house, retire comfortably; calculate net (or disposable) income. Plan: calculate necessary saving to meet a financial goal; create a cash-flow or income-expense statement; create a balance sheet showing assets and liabilities.

__Thu., Jan. 24: Reading 2: "Spending and Saving," p. 372-377. Complete Questions 1-5 on p. 377. Unit 5 Reading 2.ppt Put vocabulary from Question 1 in your Terms and memorize them. (3 points) Define vocabulary in Terms: warranty: a manufacturer's promise to repair a product if it breaks within a certain time from date of purchase. liquidity: ability to turn saving back into cash. time deposit: savings plan with a set length of time that you must keep your money in the account. insurance: plan where a company gives protection from the cost of injury or loss. liability insurance: protects a person from the cost of damage or injury to others. Questions in book: 2. List some factors to consider when buying a product. Explain why these factors are important. 3. Give three factors to consider when choosing a savings plan, and tell how they are related. 4. Why is insurance a part of the financial plan of many people? 5. Apply: Decide on one savings plan that would be the best for you now and one that would be the worst. Give arguments to support each of your choices. Learning goal: Compare different savings plans.

 

Week 20 (Jan. 28-31)

__Mon., Jan. 28: "Comparison Shopping" (2 points). Learning goal: Explain the pricing, sales, advertising and other marketing strategies used to sell products from a consumer perspective. Comparison Shopping In-Class Assignment: "Major Steps in Deciding What to Buy" (due Wednesday).

__Tue., Jan. 29: "What is credit?" lecture notes. "Applying for Credit" activity Day 1 (2 points). To computer lab: Finish "Major Steps in Deciding What to Buy" (do to earn yesterday's points). Homework C: "Credit Research" worksheet (3 points). Lectures also draws on: "Making Credit Choices." Vocabulary: credit: confidence in a buyer's ability and intention to pay. (Shown by entrusting the customer with goods or services without immediate payment. To buy on credit, means by deferred payment: Everything they have was bought on credit.) collateral: an asset used to back a loan. "three C's" of credit: character, capacity, and collateral. Learning goals: Evaluate the benefits and costs of credit; describe the "three C's" of credit (character, capacity and collateral) and explain how these attributes can affect one's ability to borrow, rent, get a job and achieve other financial goals.

__Wed., Jan. 30: "Applying for Credit" activity Day 2 (2 points). Learning goals: Evaluate the benefits and costs of credit; describe the "three C's" of credit (character, capacity and collateral) and explain how these attributes can affect one's ability to borrow, rent, get a job and achieve other financial goals.

__Thu., Jan 31: Reading 3: "Careers: Planning for the future", p. 378-381. Unit 5 Reading 3.ppt Questions 1-5 on p. 381. (3 points) Also: "Some jobs pay" activity. Get Study Guide. Questions in book: 1. How are the educational requirements for jobs changing? 2. Describe how personal goals and values affect career decisions. 3. Describe three ways to find out about a career in the computer field. 4. Are the career decisions you make today "final"? Explain. 5. Which qualities are most important for employees to have? Explain. Learning goal: Identify qualities employers look for.

 

Week 21 (Feb 4-7)

__Mon., Feb. 4: "Investing" activity Day 1 (2 points). mutual fund: pools money from many investors. Learning goals: Evaluate investment options using criteria such as risk, return, liquidity and time horizon; evaluate and apply risk management strategies in investing and insuring decisions.

__Tue., Feb. 5: "Investing" activity Day 2 (2 points). GET STUDY GUIDE IN CLASS. Learning goals: Evaluate investment options using criteria such as risk, return, liquidity and time horizon; evaluate and apply risk management strategies in investing and insuring decisions.

__Wed., Feb. 6: Unit 5 review (2 points) Personal Finance Millionaire Part 1: http://www.superteachertools.com/millionaire/online/game1360237664.php Personal Finance Millionaire Part 2: http://www.superteachertools.com/millionaire/online/game1360242710.php

__Thu., Feb. 7: UNIT 5 TEST (100 points). Show completed Terms (6 points). Turn in STUDY GUIDE (6 points).

 


 Suggested related projects you can do during PBL (Pete has materials for them):

Elective projects:

  • Shopping for an auto loan.
  • Shopping for a mortgage.
  • Shopping for a credit card.

 

Required projects (for seniors):

  • Life Plan

Unit 5 Learning goals:

__Describe different types of financial institutions (banks, credit unions, investment firms, cooperatives) and explain their role in the economy.

__Establish financial goals; make a financial plan considering budgeting and asset building to meet those goals; and determine ways to track the success of the plan. For example: Goals-college education, start a business, buy a house, retire comfortably; calculate net (or disposable) income. Plan- calculate necessary saving to meet a financial goal; create a cash-flow or income-expense statement; create a balance sheet showing assets and liabilities.

__Evaluate investment options using criteria such as risk, return, liquidity and time horizon; evaluate and apply risk management strategies in investing and insuring decisions. For example: Apply PACED decision- making process (Problem, Alternative, Criteria, Evaluation, Decision). Investment options-stocks, bonds, savings account, CDs, real estate.

Risk management strategies- diversification, dollar-averaging, safe driving, buying homeowners insurance.

__Explain the role of financial institutions and credit markets in the acquisition of capital. For example: Financial institutions (intermediaries between savers and investors)-commercial banks, investment banks, credit unions, stock exchanges. Credit markets (interaction between borrowers and lenders) determine interest rates which affect capital purchases (or investment spending).

__Evaluate the benefits and costs of credit; describe the "three C's" of credit (character, capacity and collateral) and explain how these attributes can affect one's ability to borrow, rent, get a job and achieve other financial goals. For example: Two typical costs of credit are the finance charges and a lower degree of financial security. A person's FICO score is a measure of their character and the lower it is, the higher the interest rates they usually must pay to borrow.

__Explain the pricing, sales, advertising and other marketing strategies used to sell products from a consumer perspective. For example: Unit pricing, sales tactics which can help or hinder choices, advertising which can provide useful information or misleading claims, scams, fraudulent offers.

 

Review these learning goals:

__Apply reasoned decision-making techniques in making choices; explain why different individuals, households, organizations and/or governments faced with the same alternatives might make different choices. For example: Decision-making techniques-PACED decision-making process (Problem, Alternative, Criteria, Evaluation, Decision) , benefit-cost analysis, marginal analysis, consideration of sunk costs, results of behavioral economics.

__Identify the incentives and trade- offs related to a choice made by an individual, household, organization or government; describe the opportunity cost of a choice; and analyze the consequences of a choice (both intended and unintended). For example: An opportunity cost of choosing to spend more than your income, be it an individual or government, is less financial security and ability to spend later.


 

Instructor: Peter Scholtes

peter.scholtes@academic-arts.org

651.457.7427

Class website: http://petehumanities.pbworks.com/

 

 

 

Comments (0)

You don't have permission to comment on this page.